A novel bisupported bimetal catalyst PVP-PdCl2-FeSO4/Al-Mont-PEG600 was prepared by immobilization of PVP (poly (N-vinyl-2-pyrrolidone)) supported bimetallic catalyst using alumina pillared inartificial montmorillonite as the carrier. This catalyst has good dehalogenation activity and selectivity to aryl halides-o-chlorotoluene in aqueous system in the presence of phase transfer catalyst (PEG) and sodium formate as hydrogen source. The catalyst also shows good reusability.